‘Stealth phase’ over? Why Wall Street FOMO will make $20K Bitcoin look cheap


 The year 2020 sucked for pretty much everyone. Unless you’re holding Bitcoin (BTC) that is.

The price of Bitcoin is up 125% year-to-date, making it once again the best-performing asset just as it has been for the past decade. 

Strangely enough, the public seems completely oblivious to this fact. But not everyone is ignoring Bitcoin’s latest rally above $16,000. Currently, the price is just 20% shy of its all-time high. 

Wall Street is not here yet

Considering the impressive year Bitcoin is having, it’s not surprising that Wall Street is now starting to realize that the world’s first decentralized cryptocurrency isn’t going anywhere.

Remember 2017? That historic Bitcoin price rally was largely driven by retail traders — the average Joe — who were anticipating a Wall Street stampede alongside the frenzy of new tokens minted via initial coin offerings.  

At the same time, the CME introduced their cash-settled Bitcoin futures right at the peak in December 2017 and… pop!

BTC price dropped sharply in the following months and the hype fizzled into a multi-year bear market. Obituaries from the news media made the average Joe eat the loss, and many wrote Bitcoin off as just another bubble that burst.

Google searches for “Bitcoin” pretty much tell the whole story.

Google Trends searches for “Bitcoin” (2015-2020). Source: Google

But in 2020, the public searches for Bitcoin no longer reflect BTC as its price has “decoupled.”

What’s more interesting is that even Wall Street still remains largely on the sidelines suggesting that BTC may be very undervalued at $16,000 and with a market cap of $297 billion. However, the latest data suggests that this is already beginning to change. 

“Wall Street is not here yet,” Gemini exchange co-founder Cameron Winklevoss explained last month. Winklevoss added:

“Institutions aren’t in Bitcoin right now. It’s been a retail phenomenon for the last decade. So Wall Street talks about it, they’re aware of Bitcoin, but they’re not really in it from our perspective, but it’s starting to happen.”

Wealthy zip-codes in New York and Silicon Valley drive BTC price

As Cointelegraph reported earlier this month, it is mainly wealthy areas in New York and Silicon Valley — home to many high-net-worth individuals — that are most interested in Bitcoin right now. 

But while the public is largely unaware, several wealthy investors are heralding BTC as a new asset class. Paul Tudor Jones, Michael Saylor and Stanley Druckenmiller have made waves in 2020, revealing their positions in Bitcoin. 

Do they realize something that the public did not in 2017? Was the average Joe simply too early then?

Jones said investing in BTC is like investing early in Apple stock. Saylor stated that his company, MicroStrategy, which bought up a total of $425 million in Bitcoin, will hold it for 100 years calling it “the world’s best collateral.”

Meanwhile, Druckenmiller, the latest big-name Bitcoin convert, now argues that “If the gold bet works, the Bitcoin bet will probably work better.”

Together, these smart money investors are beginning to realize one thing. As Tyler Winklevoss put it

“Bitcoin is better at being gold than gold.” 

Gold is up just 23% in 2020 during a year of global economic upheaval, which is when this safe-haven metal was supposed to shine (pun intended). 

But Bitcoin, or “digital gold,” has been stealing the show by gaining 125% year-to-date and up by almost 300% from its coronavirus-crash lows in March. What’s more, BTC’s market cap is just 2.36% of gold’s, which some long-term investors see as the best asymmetric risk-reward ratio bet in history.

Individuals who bought Bitcoin 10 or even five years ago would most likely agree.